Key points
- BTC has risen less than 1% in the past 24 hours and is trading around $91,600.
- The coin could climb further as spot Bitcoin ETFs continue to see inflows.
Spot Bitcoin ETFs continue to see inflows
Bitcoin is trading above the $91,600 mark on Friday after recovering from key support levels over the weekend. This positive performance comes as institutional demand for Bitcoin picks up, easing recent selling pressure.
Data from SoSoValue showed that U.S.-listed spot Bitcoin ETFs recorded a moderate inflow of $21.12 million on Wednesday, following a positive flow of $128.64 million the day before.
According to Glassnode’s weekly report, Bitcoin remains structurally fragile, still trading below the $93,000 resistance level. The report added that with a weakened market structure, liquidity becomes the key factor in determining what comes next.
Analysts believe recent selling pressure is easing as volatility declines. In an email to CoinJournal, Dr. Sean Dawson, head of research at on-chain options platform Derive.xyz, said the next phase will depend on the Fed’s interest rate decision in December. He noted,
“Markets are balanced on a knife’s edge, but sentiment has stabilized significantly as expectations for a rate cut have recovered. The probability of a 25bp cut at the next FOMC meeting dropped to 39% just a week ago, but has since risen to nearly 87%. In response, BTC has staged a strong rebound, rising more than 10% from $82,000 to $91,500 at the time of writing.”
The shift in macro expectations has relieved some of the intense bearish pressure that dominated the options market in late October and November. The 25-delta skew, an important measure of the relative demand for puts versus calls, has moved sharply up from its lows.
Bitcoin could extend its recovery toward $100,000
The 4-hour BTC/USD chart shows an efficient bullish recovery after the recent decline. The leading cryptocurrency found support near the key psychological level of $80,000 last week and has gained about 6% since then.
At the time of publication, BTC trades above $91,000. If the recovery continues, it could push the rally toward the next major psychological level at $100,000.
The 4-hour Relative Strength Index (RSI) sits at 61 and is pointing upward toward overbought territory, indicating growing bullish momentum. Additionally, the Moving Average Convergence Divergence (MACD) showed a bullish crossover on Thursday, providing a buy signal and supporting the potential continuation of the recovery.
However, if BTC fails to break above the $93,000 resistance level, it could retest key support near $85,000.